GE’s stock sinks, as CEO Culp can’t call a bottom in the Aviation business
published 30.07.2020 14:08
Shares of General Electric Co. sank Wednesday in volatile trading after the diversified industrial conglomerate said it suffered “across the board” weakness in the second quarter, and indicated its aviation business could take years to recover from the effects of the COVID-19 pandemic.
In the latest quarter, Power has continued to show improvement and Aviation continued to be the biggest problem, as the grounding of the Boeing Co.’s BA, -2.23% 737 MAX planes and the COVID-19 pandemic weighed heavily.
“Now as we expected, our financial performance declined across the board in the quarter,” said Chief Executive Larry Culp, according to a FactSet transcript of GE’s post-earnings conference call with analysts, as the COVID-19 pandemic took a heavy toll.
GE Aviation revenue fell 44% to $4.38 in the second quarter, missing the FactSet consensus of $4.62 billion.
Analyst Nigel Coe at Wolfe Research asked on GE’s analyst call if that, given the “very encouraging” trends in airline departures in recent months, could the second quarter be considered the “low point” for Aviation, but Culp couldn’t say yes.